Nominal GDP is defined as the:
A. Value of output in current dollars.
B. Dollar value of services but not goods.
C. Output produced by domestically owned factors of production regardless of where the factors are located.
D. Value of output in constant prices.
A. Value of output in current dollars.
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Which one of the following would shift your consumption function in an upward direction?
A) an increase in your wealth B) a decrease in your wealth C) an increase in your real disposable income D) a decrease in your real disposable income
During the period of October 1979 to October 1982; the FOMC's primary operating target resulted in:
A. the most stable period for the federal funds rate in history. B. the federal funds rate experiencing high volatility. C. the federal funds rate dropping to 2 percent (an all-time low to that date) and not rising above 3 percent. D. reserves being highly volatile.
The free-rider problem is encountered when
A. all individuals are willing to pay for what they consume. B. all individuals who consume a public good pay for it. C. someone benefits from the consumption of a public good without paying his or her full share. D. all goods consumed and produced are private goods.
Suppose that when disposable income increases by $2,000, consumption spending increases by $1,500. Given this information, we know that the marginal propensity to consume (MPC) is
A. 0.75. B. 0.25. C. 4. D. 1.33.